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Monday, October 22, 2012

Facebook Inc (NASDAQ:FB)’s Europe head quits to join British venture

Is it just a one-off event or the start of a trickle
of talent from the company? Only time will tell.

Facebook Inc(NASDAQ:FB) Europe's head of operations,
Joanna Shields, is leaving the company to join a venture started by the U.K.
government to encourage tech start-ups in the country.

Called the silicon roundabout' and planned on the
liens of America's famous Silicon valley on the western coast, the Tech City
Investment Organisation was established in April 2011 in London's East End area
to attract investments for supporting start-ups.

Companies such as Google, Cisco and Intel are
supporting the initiative.

"The success of Tech City shows just what can
happen when we back some of our most innovative and aspiring companies to
grow," Prime Minister David Cameron said in a statement on Sunday.

Shields is set to join the British organisation in
January next year and she hoped that she could join in the endeavour to make
London one of the premier tech centres in the world.

Facebook, which is already reeling under a crisis of
confidence, will be further disheartened by this latest development.

It could not have come at a worse time for the social
networking site, which is seeking to assure investors that all is well within
the organisation and it is on track to deliver according to investors'
expectations.

The shares in the company have exactly halved since
its debut in May at $38 a share. The prospect for the company at this juncture
appears extremely dim.

"Facebook supports the UK Government's vision for
building a stronger technology-based economy and start-up ecosystem, and we
wish Joanna every success," a company spokesman said.

Shares of FB are up 1% in the opening session. The
company is scheduled to report its earnings
this week.